Multimedia electronic wallet with generic card

ABSTRACT

An electronic wallet is disclosed which provides multiple data media interfaces. Standard interfaces will include a smart card reader/writer, a magnetic reader/writer, a radio frequency transceiver and a user interface. A generic card is insertable into an electronic wallet to provide magnetic or smart card data carrier means. The generic card assumes the identity of any stored digital card and is submitted to a card acceptor in that guise. A generic attachment card is also insertable into an electronic wallet to provide further media interfaces via various card attachments. In another embodiment, the electronic wallet and generic card are combined into a single wallet-card which also requires a wallet-card holder. Almost all the functions provided by a separate electronic wallet, generic card and generic attachment card are included in the electronic wallet-card and wallet-card holder. In operation, media independent digital cards will be stored within an electronic wallet and can receive or output data via any standard or optional media interface. A digital card will be selected and interfaced with a specified or default medium, with digital card content capable of being medium specific. Digital card and medium selection can be specified by either the wallet user or the digital card recipient.

FIELD OF THE INVENTION

This invention relates to portable communication devices which include aprotected processor and storage, multiple standard and optional mediainterfaces, data encryption/decryption capabilities and a genericmultimedia card, such as a multimedia transaction card.

BACKGROUND OF INVENTION

In analyzing the contents of a traditional wallet, the items carried inthis hypothetical wallet currently create numerous problems. A typicalwallet holds a variety of items such as financial cards (debit cards,credit cards, telephone cards, etc.), miscellaneous cards (driverslicense, social security card, access card, transportation or farecards, health and insurance cards, etc.), cash (notes and coins), checkbook, various paper receipts ( Automated Teller Machine receipts,purchase transactions receipts, etc.), a phone and address book,business and personal name and address cards, a note pad and acalculator. As discussed below, however, there are many shortcomingsassociated with the provision of each of these items in the typicalwallet carried by a consumer.

WALLET ITEMS

1. CARDS

The use of information bearing cards is proliferating, especially in thefinancial sector. A variety of cards are now used, or intended for use,in making payments, obtaining funds, obtaining access to a physical areaor a computer system, and providing card owner identification andinformation.

With the explosion of card based acceptance, the need to carry multiplecards has become commonplace, with the average household in the UnitedStates owning an average of approximately nine payment cards alone.Furthermore, this explosion is being fuelled by current trends.

Within the financial sector a number of electronic cash schemes are inprogress. However, since these systems are in competition and even usedifferent media, the need to carry multiple cash cards for differentapplications is highly probable (e.g. stored value telephone card andelectronic purse card). Not only that, a trend towards credit cardco-branding has seen the emergence of non-financial institutions asno-fee credit card issuers, with enticements to obtain a card based oncore business inducements. With the introduction of electronic cash andthe continued growth of on-line debits, this trend is certain to beadopted by asset and cash based institutions, such as mutual funds andelectronic cash providers, resulting in even more cards.

In other areas, trends in providing national health cards, and aproposed digital signature card to allow signed electronic tax returnfiling, are just two of the biggest card issuing systems that willcreate still more cards.

A major problem of the card explosion is the different types of cardmedia that have emerged. The debit/credit card typically employs amagnetic stripe, while access control is dominated by either magneticstripe or radio frequency proximity cards. Stored value cards may use amagnetic stripe, while electronic purse systems have primarily adoptedthe smart card--with contact cards (i.e. cards have electrical contactsdisposed therein for transferring information from the card to a cardreading mechanism) being used for retail payments and non-contact cardsfor transportation payments such as road tolls.

A further card problem lies with the need to ensure card dataauthenticity. This is particularly so in the credit card industry whichhas experienced an enormous rise in fraud and/or theft during recentyears. In 1992 losses on the order of US$ 2 billion resulted from creditcard fraud or theft. A wealth of security features have been implementedranging from inclusion of holograms and tamper proof signature strips toa hash code based on unique card details.

The current fraud prevention trend is towards encryption using a smartcard micromodule, which typically includes a combination ofmicroprocessor and non-volatile storage memory. Micromodules are highlysecure against unauthorized access and also possess the ability toperform symmetrical and asymmetrical data encryption. However, aninstalled base of smart card readers does not yet exist in sufficientnumbers to allow this micromodule to be taken advantage of. That is,smart card readers capable of interfacing with and receiving data fromthe micromodule contained in the smart card are not as widely installedas other forms of card interface technology, such as magnetic stripereaders. Therefore, the ability of the consumer to use a card having asmart card micromodule to initiate a consumer transaction is severelyrestricted.

2. CASH

It has often been argued that elimination of physical cash would solvethe majority of crimes, as many crimes are cash based or a direct resultof a cash based industry such as illicit drug sales. The sheer handlingof cash also causes other significant problems. The cash payer mustcarry many denominations so as to provide correct monies, especiallywith the growth in self-service devices. Obtaining cash is also aproblem and has only partially been alleviated through the use ofAutomated Teller Machines (ATMs). ATM users are frequently targets ofrobbery attempts and ATM interface formats are becoming increasinglyproprietary, with use of non-proprietary ATMs incurring a punitive fee.

Cash acceptors incur significant cash handling costs which have beenestimated at approximately 2% of their cash value. Acceptors mustprovide secure cash storage, count and reconcile takings, obtain andhold sufficient denominations to provide correct change, and installrobbery and theft prevention measures.

Counterfeits are also a problem, with the ability to create virtuallyunidentifiable counterfeits already a reality. Lastly, cash creation andreplacement is extremely expensive, especially in note based countries.

3. CHECKS

Checks cause similar handling problems to cash in that there aresignificant costs incurred in check processing. Checks must bephysically transferred to the check settlement institution, usuallydelivered to the check account holder, and check images must legally beretained for a lengthy period after settlement has occurred.

The cost of transporting checks, coupled with the technological limitsof handling current volumes, and the regulatory and customer demands forfaster check settlement, make checks an inefficient, risky and costlypayment instrument.

From a check issuer perspective the time involved in actually writing acheck, recording it, and performing checkbook reconciliation aresignificant. Not only that, check acceptance is, at best, regional andeven then will typically require at least one form of identificationsuch as a check cashing card or drivers license.

Finally, check fraud is exploding. With the advent of color printers andscanners, and with the introduction of sophisticated desktop publishingsoftware, the ability to reproduce or create a seemingly authentic checkis within the capability of millions or people. Even such secureinstruments as cashiers checks have been successfully counterfeited,with recent fraud and bounced check levels estimated at between $US 3-6billion per annum.

PAYMENT RELATED PROBLEMS

A number of general payment problems are also related to the walletitems discussed above. Credit payment authentication is primarilyperformed by establishing direct communication link with the cardissuer, resulting in communications costs and an inherent and variabletransaction approval delay. Alternatively, authentication can be limitedto card security feature checking, albeit with significantly greaterfraud risk. These factors have resulted in either non-acceptance ofcredit cards, or non-cost effectiveness for small amounts andfrustrating approval delays for time critical transactions. Furthermore,in the majority of countries, communication systems can be too costly,too slow or altogether non-existent.

A further problem is associated with remote or self-service devicepayments. These are currently mainly limited to credit cards, withincreased card owner and card acceptor risk as neither is able to fullyvet the other. The result has been a number of payee and payer frauds,particularly in the area of telephone transactions. The arrival ofinteractive television and burgeoning self service vending device growthare creating even more risk exposure problems. Because of theseproblems, non face-to-face card acceptance qualification has been mademuch more difficult, thereby eliminating a large number of businessesfrom offering this type of service.

Offline debit cards have recently been offered as check replacements,but carry the same card authentication problems as credit cards. Theyalso carry the risk of a bounced debit transaction due to theunavailability of funds.

Finally, point-of-sale debit card use has been pushed as an alternativeto cash. However, an on-line card issuer system is required as well as anumeric keypad to allow the customer to enter a secret PIN. Furthermore,most systems are regionalized and semi-proprietary thereby limitingtheir effectiveness. Lastly, the cost of implementing this type ofsystem is significant and has discouraged large numbers of businessesfrom doing so.

Other wallet items provide individual problems which will becomeapparent, with the major problem being one of wallet clutter.

PRIOR ART

U.S. Pat. Nos. 4,614,861 to Pavlov et al. and 4,707,594 to Roth appearto disclose electronic wallets in the form of self contained cardsincluding a power supply, user interface, processor and static magneticstripe. Roth's patent is very much related to wallet design, with mediainterfaces limited to a keypad and display. Pavlov also provides keypadinput and display output and relates primarily to data security.Additionally, an electronic input/output port is also provided.

A number of patents and documents discuss electronic wallets thatprovide a processor, memory, a user interface, a power supply and a cardprocessor reader/writer. However, none of these references disclose acard having a magnetic reader/writer or generic multimedia card, withonly two including wireless data transfer. Omission of the magneticreader/writer precludes the ability to utilize the existing magneticstripe infrastructure.

U.S. Pat. Nos. 4,277,837 to Stuckert and 4,523,297 to Ugon et al. areexamples of these type of electronic wallets. Ugon demonstrates theviability of communication between an electronic wallet and a cardmicromodule via a smart card reader/writer and also includes anelectronic wallet card insertion slot. Stuckert discusses a cardprocessor interface and a radio frequency transmitter.

A further example is provided by Mondex. An electronic purse card isoutlined in a document titled "MONDEX--The Worldwide Alternative toCash." Electronic monies are carried on a smart card, and an optionalhandheld wallet that includes a display, keypad and smart card interfaceis also provided.

A more common electronic wallet of the aforementioned variety isenvisioned by CAFE and outlined in a document titled "CAFE, theElectronic Wallet of the Information Age." This also provides a display,keypad, smart card interface and an infrared medium interface.

A variety of self contained magnetic stripe emulators have beendiscussed, with the primary aim being to allow multiple magnetic stripecards to be encapsulated on one physical smart card. All these emulatorsinclude a processor, memory and power supply. Some also include a keypadand display, but none include a magnetic reader/writer, radio frequencytransceiver or smart card reader/writer.

U.S. Pat. Nos. 4,701,601 to Francini et al., 4,868,376 to Lessin et al.and 4,814,591 to Nara et al. are all examples of electronic wallets witha magnetic medium emulator and user interface, while U.S. Pat. Nos.4,791,283 to Burkhardt and 4,786,791 to Hodama are examples of magneticstripe emulator cards. A variety of different magnetic stripe emulationmethods are disclosed, with certain shortcomings being common to all.

First, emulation will require an active power supply. However, power iseffectively limited to an internal battery as other power sources wouldpreclude card use in magnetic readers where a card is completelyinserted (most ATMs currently fit into this category). In this type ofreader solar cells would be deprived of light, while no external powersupply could conveniently be attached once a card is fully inserted.Failure to use an internal battery would necessitate the carrying ofmultiple cards thereby negating the need for emulation.

Problems associated with an internal battery are significant. Batterylife will be limited because of the physical dimensions of the card,which also makes inclusion of a replaceable battery extremely difficult.As a consequence, card costs cannot be amortized over the card life andare effectively limited to the life of the battery. Conversely, magneticencoding can be done prior to card submission which circumvents anypower and size constraint problems.

Second, emulation requires the inclusion of complex circuitry in adevice of card dimensions. Such a card must meet certain flexingstandards which increases the likelihood of circuitry breakage and isexacerbated by the habit of carrying a card under adverse conditions,such as in a purse or pocket.

Third, emulation will typically require the emulator to be aligned withthe read head, kept stationary during emulation, and include anemulation activator. Since most emulators are depicted as beingphysically shorter than the length of a magnetic track, the emulatorwill be aligned with the read head for a shorter duration. This couldresult in incorrect data decoding, especially in swipe readers where theswipe speed varies significantly. Therefore, to ensure correct datatransfer, different handling methods for emulator and non-emulator basedcards is necessitated when using swipe readers.

Fourth, emulator activation within a sealed reader such as certain ATMsmust be provided. Hodama appears to have recognized this and hasincluded an emulation activator so that emulation is started as theemulator becomes aligned with the read head. However, Hodama does notaddress the problem of stationary card emulation in swipe readers.

Finally, no ability to read magnetic stripe cards is provided, althoughLessin also includes ability to accept data from a magnetic writer. Thisprecludes reading of magnetic data on a separate card, which prevents awallet from storing existing magnetic card data or reading magneticallyencoded digital card transactions.

U.S. Pat. No. 4,791,283 to Burkhardt appears to have recognized the needfor card handling uniformity and addresses the problem of placingemulators stationary in a swipe magnetic reader by duplicating emulateddata values across substantially the entire length of where a magneticmedium would reside. This solves the problem of having to place theemulator stationery against a magnetic read head and also allows insertreader usage as the emulation rate can be matched with the known cardinsert speed. However, it raises a different problem in swipe readers asthe card swipe speed is sufficiently variable to exceed tolerances foraccurate data decoding using a single emulation rate. To overcome thisdeficiency, Burkhardt proposes to modify all magnetic readers so that acard could monitor its speed past the read head and adjust its emulationrate accordingly. This modification would be an enormous and costly taskto implement given the numbers of magnetic readers that exist.Furthermore, failure to modify any significant number of swipe readersrenders them unusable by emulator based cards, thus requiring thestationary method of operation.

One solution to the problems discussed above would be an emulator and asensor, at least as long as a magnetic track, which would act as anemulation activator and positioner. This sensor would continuouslydetect the magnetic reader head position and adjust the emulation rateaccordingly. However, power and flexing problems would still need to beovercome. Moreover, card costs would be high because of the difficultyin manufacturing such a card with inherent size constraints, and thewallet could still not function as a smart card or magnetic stripereader/writer.

Two patents relating to an electronic wallet with magneticreader/writers are disclosed. U.S. Pat. No. 4,812,632 to Kakinuma et al.appears to disclose an electronic wallet having a processor, userinterface and mechanized magnetic reader/writer. Kakinuma et al. appearsto be intended purely as an electronic check generator. No mention ismade of using a secure processor and memory, or of encrypting checkinformation, with the intention appearing to be the avoidance ofcarrying a check book and elimination of paper check handling. Automaticcheck recording and electronic check submission are also provided,thereby allowing faster and cheaper check transfers and settlement.However, no smart card reader/writer or radio frequency transceiver areincluded.

U.S. Pat. No. 5,221,838 to Gutman et al. also includes an electronicwallet with processor and storage, user interface, magneticreader/writer and radio frequency communications capability. This walletis primarily a radio communication and direct wire connect device, withthe magnetic reader/writer and universal card included purely forelectronic card holding. No mention is made of encrypting card data toreduce fraud, or of using the electronic wallet to generate new oroff-line payment instruments. Gutman's aim in providing the universalcard is purely to avoid the need to carry multiple cards, with card dataessentially being reproduced on the universal card and submitted inaccordance with current practice.

Gutman also includes selective wireless call receiving means as a majorcomponent and envisages transactions primarily occurring in real-timevia selective radio frequency data. This approach is not considerednecessary to achieve efficient, cost-effective and timely paymentauthentication. Creation of such a system will require significantinfrastructure development and cost, with costs being recouped by feescharged for these services. Furthermore, the ability to use theseservices will not be available at every location for some considerabletime. Also, submission of transactions of a small amount would notappear to be economically viable.

Gutman and Kakinuma have also failed to recognize the emerging smartcard infrastructure. No smart card reader/writer or generic smart cardhave been included, nor has a smart card micromodule as the securityengine been disclosed, with Gutman's encoder and decoder appearing to beused purely for securing radio frequency data and not for encrypting anyuniversal card data.

Gutman's wallet does not appear to have been designed as a ubiquitouswallet that will be easily carried at all times, by virtually everyone,and usable everywhere. Furthermore, with the inclusion of a printer andbar-code reader, wallet cost and size will be raised significantly.

The major wallet omission is the exclusion of a smart card reader/writerwhich significantly limits the effectiveness of both Gutman's andKakinuma's wallets in the following areas.

First, no smart card/wallet data exchange can occur. This preventsinclusion of digital cards, such as electronic purses, that areprimarily used by the emerging smart card infrastructure. It wouldappear that a smart card could be used as the universal card, but thiswould limit the number of digital cards to the storage capacity of thesmart card, with no way of easily expanding that capacity. Furthermore,such digital cards would effectively be locked into the smart cardinfrastructure and would not be media independent.

Second, mutual card/wallet authentication cannot be established. Thisprevents these wallets from accepting smart card digital cardtransactions (i.e. functioning as a smart card point-of-sale terminal),transferring monies to or from a smart card electronic purse, orincluding discrete digital card transaction security measures from botha universal card and a wallet.

Third, universal card data input and output control cannot be performed.With the ability to immediately read and write magnetic stripe data,fraud potential is increased rather than being reduced. Data from astolen credit card could be instantly transferred to another card, fakeor genuine, and used immediately. Genuine cards could be used inestablishments where the sales draft is computer generated usingmagnetic stripe data, whereas a fake card could be used where a cardimprint is taken. In both cases, a genuine signature, hologram etc.could be used on the card to defraud the payee.

This problem also limits a card's ability to function as a trulyuniversal card. Such a card could have a photo and other informationprinted on it, thereby allowing any card issuer to create a digital cardwhich is based on that information (e.g. drivers license, passport etc).However, card issuers must be assured that physical and digital carddata correspond before they will adopt this approach. Such informationcould be included on the same smart card, but with the sameaforementioned storage and smart card media dependence constraints.

To provide a truly universal card with media independent digital cards,no digital card should permanently reside on this card. Instead digitalcards should be downloaded to a generic multimedia card from a wallet,or from a digital card storage medium which can be read from and writtento by a wallet.

The ability to establish both card authenticity and digital cardidentity must also be provided. Card authenticity is needed to beassured that data received from a universal card (such as monies from anelectronic purse) is genuine. Similarly, permission for a universal cardto assume a digital card identity must also be determinable to preventindiscriminate digital card reproduction.

A final requirement is the prevention of card substitution afteruniversal card authentication and digital card identification have beenestablished. This is needed to ensure that the universal card givenapproval to assume a digital card identity must be the same card thatthis information is actually downloaded to. Conversely, informationretrieved from a downloaded digital card must be returned from the samephysical card it was output to, so as to prevent multiple transactionresubmissions to the same wallet or to multiple different wallets. Noneof the above problems and requirements have been addressed or providedby the prior art and specifically either Kakinuma or Gutman.

SUMMARY OF THE INVENTION

It is an object of the present invention to overcome the aforementionedproblems by providing a compact, low cost electronic wallet and genericmultimedia card that is capable of holding multiple digital cards.

It is yet another object of the present invention to provide anelectronic wallet and generic multimedia card that is easily carried atall times, can be carried by almost everyone, and is usable everywhere.

It is a still further object of the present invention to provide fourcore input and output methods and media, namely (1) non-interactivecontact via magnetized media; (2) interactive contact via a smart cardmicromodule; (3) non-interactive non-contact via user interface media;and (4) interactive non-contact via a radio frequency transceiver, andto further provide media attachment expandability so that any othermedia interfaces can be used.

Yet another object of the present invention is to provide an electronicwallet having an "open media" capability such that different media canco-exist within a single application.

A still further object of the present invention is to provide digitalcards that can include wallet owner payment cards, identification cards,information carrying cards, digital signature cards or othermiscellaneous cards.

It is yet another object of the present invention to provide a digitalcard processing language that offers easy digital card creation, mediumspecific digital card content and dynamic digital card process andtransaction format alteration.

A still further object is to provide digital card media independence byallowing digital card transaction exchange via any provided wallet mediainterface.

Yet another object of the present invention is to provide integritybetween a generic multimedia card and digital card data to ensure thatthe generic multimedia card and digital card data correspond.

It is an object of the present invention to allow existinginfrastructures to accept existing or new digital card transactionswithout having to modify that infrastructure or alter the manner inwhich existing digital cards are handled.

It is a further object of the present invention to provide digital cardstorage, processing and transaction autonomy so that transactions fromthe same electronic wallet but different digital cards cannot bematched.

A still further object of the present invention is to allow anyelectronic wallet to act as a digital card acceptance terminal, and toauthenticate and optionally store any digital card transaction, therebyallowing an electronic wallet to also function as a point-of-saleterminal.

Another object of the present invention is to eliminate paper basedinformation by automatic or manual digital card transaction recordingand by providing optional additional electronic storage.

It is an object of the present invention to reduce fraud and theft bysecuring access to an electronic wallet, by protecting the informationstored on the electronic wallet, by protecting the digital cardtransaction creation process, and by allowing input and output digitalcard data to be encrypted.

A still further object of the present invention is to allow off-linedigital card transaction authentication with optional on-lineauthentication on a random, medium specific or periodic basis.

Another object of the present invention is to allow digital cardtransactions to be performed using any telephone along with anelectronic wallet user interface (e.g. obtain cash, renew digital card,make any type of cash/check/debit/credit payment etc.).

In accordance with these and many other objects, the subject inventionincludes an electronic wallet and generic multimedia card which allowsvirtually all traditional wallet items to be recreated in the form ofelectronically stored digital cards. Multiple standard and optionalmedia interfaces are provided, with a digital card being mediaindependent and capable of transaction input or output via any providedmedia interface.

The electronic wallet includes protected processor means for controllingthe various media interfaces and for executing digital card processes,protected storage means connected to the processor means for storingdigital card processes and data, user interface means for digital cardselection, medium selection and data capture, power supply means forproviding power to the electronic wallet and generic multimedia cardcircuitry, radio frequency communication means for providing wirelessdata transfer, magnetic reader/writer means to allow information to beread from and written to a magnetizable medium, and smart cardreader/writer means to provide smart card data exchange. The electronicwallet of the present invention provides digital card/generic multimediacard integrity, smart card authentication, card sensing, and furthermedia interfaces via a generic attachment card and various mediainterface attachments.

The generic multimedia card of the present invention includes protectedprocessor means for executing digital card processes, protected storagemeans connected to the processor means for storing digital cardprocesses and data, data input-output means to provide authentication ofthe electronic wallet and for data transfer, and magnetizable mediummeans for storing magnetically recorded data.

In another embodiment, the electronic wallet and the generic multimediacard are combined to form an electronic wallet-card which is supportedby an electronic wallet-card holder.

The electronic wallet of the present invention places emphasis on datasecurity as opposed to media security. Also, by using the electronicwallet and the generic multimedia card, all problems associated withcard dimensions are circumvented. The electronic wallet thereforeprovides multiple media interfaces with optional media expendability,digital card process flexibility, and can function as a customer wallet,a smart card and magnetic stripe card acceptance terminal, a datacapture device, a remote banking terminal, a remote payment device, anelectronic checkbook, an electronic purse, an electronic card holder, atransaction security controller, and a transaction recorder andreconciler, among other functions.

In providing media independent digital cards that can be interfaced witha variety of media, major infrastructure benefits are realized.Infrastructure obsolescence is avoided, of particular importance in theomnipresent magnetic stripe infrastructure, while new and more effectivedata transfer media interfaces such as, for example, smart card andradio frequency interfaces can be installed. This allows multiple mediatypes to now be able to co-exist within a single application.

Finally, off-line authentication is possible using the electronic walletof the present invention, thereby providing a very secure,cost-effective and timely method of data acceptance.

BRIEF DESCRIPTION OF DRAWINGS

FIG. 1 is a perspective view of an electronic wallet in accordance witha first embodiment of the present invention.

FIGS. 2A and 2B are block diagrams of the electronic wallet and genericmultimedia card in accordance with the present invention.

FIG. 3A is a block diagram of the present invention showing thecomponents used to perform manual reading and encoding of a magneticmedium located on a separate card.

FIG. 3B illustrates a block diagram of the present invention showing thecomponents used to perform stationary encoding of a magnetic stripelocated on a separate card or programming of a magnetic stripe locatedon an electronic wallet-card.

FIG. 4A depicts a block diagram of electronic wallet-card components inaccordance with the present invention.

FIG. 4B depicts a block diagram of electronic wallet-card holdercomponents in accordance with the present invention.

FIG. 4C illustrates an elevated view of an electronic wallet-card holderin accordance with the present invention and a wallet-card placed withinthis holder.

FIG. 5A is a schematic view of a generic attachment card used with thepresent invention.

FIG. 5B is an perspective view of a medium attachment.

DESCRIPTION OF THE PREFERRED EMBODIMENT

Satisfying customer needs for convenience, security and simplicity,payee needs for faster, safer, more cost-effective operations, andpayment funds manager needs for fraud reduction and maximization ofexisting infrastructure investment through introduction of newinstruments, are accomplished by the introduction of the electronicwallet 100 and generic multimedia card 260 (such as, for example, amultimedia transaction card) of the subject invention shown in FIGS. 2Aand 2B.

The electronic wallet 100 and generic multimedia card 260 of the presentinvention provide for the securing of the data as opposed to the mediaand, the ability to perform data exchange via a variety of mediainterfaces. This allows different media to co-exist within a singleapplication, with digital cards being media independent and with digitalcard content being determined by the medium interface used.

A core of four media input and output interfaces are provided, thesebeing (1) a magnetic reader/writer 220 used to permit interfacing withthe existing magnetic reader/writer infrastructure; (2) a smart cardreader/writer 210 used to permit interfacing with the emerging smartcard infrastructure; (3) a wireless radio frequency transceiver 230 usedto allow quick and convenient data exchange, and (4) user interfacemedia 110/120 used to act as backup for the other media and to providedata input/output means. Further media interfaces may optionally beattached via a generic attachment card 500 or a serial port (not shown).

Data input and output are preferably in the form of transactions from atemporary or permanent digital card. Digital card issuers can definedigital card handling processes and make digital card transactions mediaspecific, media restricted and transaction unique. For uniformitypurposes, any portable data carrier is referred to as a card.

Referring to FIG. 1 a perspective view of electronic wallet 100 is shownin accordance with an embodiment of the subject invention. Such anelectronic wallet 100 includes data processing means, data storagemeans, and media interface means. Preferably, electronic wallet 100 isformed from plastic, metal or other suitable material, and may forexample have dimensions approximately 63 mm by 92.5 mm by 4 mm.

A keypad 120 and display 110 provide user interface means. Similarly acard slot 130 provided in the wallet 100 allows any card 150 to beinserted into the electronic wallet 100 so that data exchange via a cardmedium/wallet medium interface can occur. A variety of card dimensionscan be supported, however a typical card will comply with ISO document7810.

FIG. 2A outlines the components used to allow the electronic wallet 100to provide data processing means, data storage means and media interfacemeans. A wallet micromodule 200 provides protected data processing anddata storage means, as well as controlling other electronic walletcomponents. Micromodules are used in so called smart cards, with avariety of memory and microprocessor based micromodules already inexistence. One definition of a micromodule is "a microprocessor withconnected non volatile memory, which includes special physical, logicaland chemical measures to prevent unauthorized data access and processorinstruction reverse engineering." In the most preferred embodiment ofthe present invention, a public key cryptography co-processormicromodule is favored so as to provide a digital signature capability.The cryptography co-processor and its microprocessor interface are alsoprotected, and provide asymmetrical encryption/decryption capabilities.An example of such a micromodule is SLE44C200 manufactured by Siemensand commercially available from a number of electronic componentsuppliers.

By using a micromodule, the best of both worlds can be realized. Thesmart card has long been hailed as the answer to a variety of needs,when in fact it is the micromodule itself that provides these solutionswith the card being purely a convenient micromodule carrier. Protectionof data, especially cryptographic keys and processor instructions,combined with the ability to perform symmetrical and asymmetricalencryption, make the wallet micromodule 200 an ideal security engine.

While the wallet micromodule 200 is shown as also controlling thevarious wallet components, it is possible and within the scope of thepresent invention that a different microprocessor (not shown) couldperform these functions with the role of the wallet micromodule 200limited to confidential data storage and processing protection. Thewallet micromodule 200 and the card micromodule 270 functions could alsobe combined, with the single micromodule residing on either theelectronic wallet 100 or the generic multimedia card 260.

With the inclusion of the wallet micromodule 200, the many benefits ofsmart cards can be realized, but with a much wider usage. Digital carddata can first be secured, then input or output using any of theprovided media interfaces.

User interface means are exemplified by a keypad 120 and display 110,although more elaborate means such as touch based or voice recognitioninterfaces could equally be provided. These media are used in a varietyof ways, with one of the most advantageous being the ability to use anytelephone as an ATM.

A magnetic reader/writer 220 is provided to allow data exchange via amagnetically encodable medium located on a separate card. Any combinedmagnetic reader/writer 220, or separate reader and writer, of any typecould be used, with magnetically encoded information complying withknown standards, encoding techniques (e.g. ISO document 7811) and datastorage densities. A large number of thin film magnetic heads and headarrays have been documented as shown in U.S. Pat. No. 4,751,598 toHamilton, U.S. Pat. No. 5,063,467 to Colineau et al. and in a booktitled "Magnetic Heads for Digital Recording" by Petru Ciureanu, thecontents of which are incorporated herein by reference.

Typically, a magnetic data card is inserted into the electronic wallet100 via the card slot 130, with reading and/or writing of data occurringduring card insertion, extraction, or while the card is stationarywithin the card slot 130. A magnetic data card is typically a financialcard with one or more magnetic stripes 280, although a card could alsobe partially or entirely coated with a magnetizable medium to provide ageneric magnetic track location capability. While the card slot 130 willmainly house a generic multimedia card 260, any transaction card can beread or written to, with a transaction card classified as any insertabledata carrier which contains a magnetizable medium.

By providing magnetic data reading and writing capabilities, the abilityto retain the existing magnetic based infrastructure, make existingpayments instruments more secure (e.g. credit cards) and provide newpayment instruments that can be accepted by this infrastructure (e.g.electronic cash and checks) is provided.

Whereas the magnetic reader/writer 220 is a non-interactive medium, thesmart card reader/writer 210 is an interactive medium to a micromoduleon a separate card for example a generic multimedia card 260. The smartcard reader/writer 210 will typically conform with ISO documents 7816and/or 10536 related to micromodule placement and electrical contactdimensions, with a contact interface being preferred. However, anon-contact interface could also be used.

The smart card reader/writer 210 serves a number or purposes. First, thesmart card reader/writer 210 allows the electronic wallet 100 to storesmart card applications in the form of digital cards. The smart card isan emerging and low cost technology, especially in the electronic casharea, and inclusion of this interface allows a digital card or digitalcard transaction to be downloaded to a generic multimedia cardmicromodule 270.

Second, the smart card reader/writer 210 allows any smart card to beread or written to. Effectively this allows an electronic wallet 100 toact as a smart card authentication terminal thereby allowing the walletto function as a point-of-sale terminal, portable data capture terminalor electronic purse supplier/acceptor.

Third, mutual smart card/electronic wallet 100 authentication can beachieved. This is a vital first step in a number of applications, withone use being cash payment mutual authentication before either willrelease payment information. Separate security features may also beprovided by incorporating information from both an electronic wallet 100and a smart card.

Finally, use of a generic multimedia card 260, and a generic multimediacard 260 medium, can be controlled via the smart card reader/writer 210.There are two types of digital card identities. A totally genericdigital card can be output to any media or, optionally, to specificmedia only (e.g. prepaid card to any medium). However, a card dependentdigital card can only be output to a specific generic multimedia card260 and, optionally, a generic multimedia card 260 medium (e.g. driverslicense output to magnetic stripe 280 only).

The final medium interface is a radio frequency transceiver 230 whichtypically operates at very short ranges and for frequencies preferablyin the low frequency range. The radio frequency transceiver 230 providesextremely fast interactive communication between an electronic wallet100 and an radio frequency communications device or another electronicwallet 100. This allows tasks such as cash payments to be performedautomatically, with the wallet owner only required to optionally approvethe amount and/or enter a password.

The concept of securing the data and using the medium purely for datatransfer equally applies for radio frequencies. Therefore, only a singlefrequency for send and for receive are needed. However, a spreadspectrum approach could be used as a further level of security.

A number of miniature radio frequency transceivers 230 and transpondersexist, with the IN-CHARGE card by RACOM demonstrating a very smallformat radio frequency transponder suitable for use in the presentinvention. Also, the trend by retail outlets towards radio frequencytags for product and pricing information provides the market to driveradio frequency component costs down, as well as providing a radiofrequency data capture infrastructure. Finally, U.S. Pat. No. 5,159,347to Osterwalder, incorporated herein by reference, demonstrates oneembodiment of a very small and effective antenna that could be employedwith the radio transceiver of the present invention.

The clock/calendar 240 is included to provide data security, digitalcard control and user functionality. Date and time can be included tohelp uniquely identify a digital card transaction, while digital cardusage can be protected by checking an expiration date. Lastly, userfunctions such as date and time based lists and/or events etc. can bemanually or automatically recorded.

Power is supplied by a replaceable battery 250, with power supplied tothe wallet micromodule 200, and to external cards or attachments via thesmart card reader/writer 210. Solar cells or other power supply meanscould also be used to augment or replace the battery 250.

FIG. 2B refers to a block diagram of a generic multimedia card 260. Thegeneric multimedia card 260 has no fixed identity and can assume theidentity of any digital card and then function as either a smart cardand/or magnetic data card. Typically the generic multimedia card 260 isof dimensions in compliance with ISO document 7810. However, multiplegeneric multimedia cards 260 of different dimensions may be used such asa thinner more flexible card typically used in public transportation.

A card micromodule 270 allows the generic multimedia card 260 tocommunicate with the electronic wallet 100 or any other smart cardreader/writer and performs functions similar to a wallet micromodule200. The card micromodule 270 enables the generic multimedia card 260 toact as a pseudo electronic wallet 100 for one or more digitalcards--albeit that no user interface exists. Multiple digital cards ordigital card transactions can be downloaded to the generic multimediacard 260 which can then be carried and used without further electronicwallet 100 interaction. Alternatively, an electronic purse card can beused where an electronic wallet 100 is not needed, with cash beingdownloaded to this purse. An example of possible usage being where achild carries a purse to pay for lunches, etc.

The card micromodule 270 also provides digital card/generic multimediacard 260 security. Digital card identifiers can be stored on the genericmultimedia card 260 or a multimedia card 260 identifier can be storedwith a digital card, and limits a generic multimedia card's 260 abilityto adopt a digital card identity. Should owner information (e.g. aphoto) be included on a generic multimedia card 260, the digital cardissuer may wish to ensure that digital card data is always tied to thatspecific card. Therefore, as well as storing a digital card on theelectronic wallet 100, a digital card identifier can be stored on ageneric multimedia card 260. The digital card process then ensures thatthis identifier exists on the presented generic multimedia card 260before any digital card data is output to that card. The cardmicromodule 270 further assists in this operation by preventing cardsubstitution once it has been established that a generic multimedia cardis permitted to assume a digital card identity. Periodic genericmultimedia card 260 identity checking is performed until digital cardinformation has been, or is about to be, output to that card.

Other security functions are also provided. A card micromodule 270 isable to prove its own authenticity, as well as establish that of anyelectronic wallet 100, with additional digital card transaction securityalso possible by including separate electronic wallet 100 and genericmultimedia card 260 security measures.

The generic multimedia card 260 magnetic stripe 280 allows data to bewritten to it and read from it--primarily by the electronic wallet 100magnetic reader/writer 220, with data optionally spread over multiplemagnetic tracks. Once the magnetic stripe 280 is encoded, the genericmultimedia card 260 can be submitted to any magnetic stripe 280reader/writer in the same manner as if it were the original card.Information can also be read back from an altered magnetic stripe 280 byelectronic wallet 100 and financial records of the wallet may optionallybe updated automatically.

Other physical information such as a card owner signature, photo,hologram and bar code could also be included on the generic multimediacard 260 so that it becomes owner specific. Furthermore, card types forwhich a card owner typically only has one can also be included on thegeneric multimedia card 260. These include Weigand, Barium ferrite andProximity media, although a proximity card capability could also beprovided by the radio frequency transceiver 230 in the electronic wallet100, or by a separate radio frequency transceiver attachment.

FIG. 3A is a block diagram illustrating the most preferred embodiment ofa magnetic reader/writer 220 suitable for use in the present invention.The components used to perform manual reading and encoding of a magneticmedium located on a separate card are illustrated.

Reading or writing of magnetic data is achieved by a magneticreader/writer 220 which includes three magnetic transducers: a magneticposition transducer 320 (MPT), a magnetic write transducer 330 (MWT) anda magnetic read transducer 340 (MRT). Encoding and reading is typicallybe achieved by manually removing a card from, or inserting a card to, anelectronic wallet 100 via the card slot 130.

To ensure that magnetic data is read or encoded correctly, the abilityto determine the magnetic medium position is required. This task isperformed by the MPT 320 which acts as a sensor and reports all magneticflux changes to the wallet micromodule 200. A thin film magnetoresistivehead is used along with a predefined magnetic positioning clock 310(MPC) included on the card.

The MPC 310 is a high coercivity magnetic medium with data bits recordedwith alternating polarity and changing at each conceivable magneticmedium flux transition. Decoding or encoding is based on the number ofMPC 310 bits in relation to a magnetic medium bit, with these tasksperformed by the wallet micromodule 200. A permanent MPC 310 is includedon any generic multimedia card 260, while an MPC 310 attachment can beplaced on any other card. The major benefits of using an MPC 310 is toallow magnetic data to be read from or written to a generic multimediaindependent of card insertion or removal speed while still providing theability to keep the electronic wallet small, low cost, and reliable,with reliability achieved by the elimination of a mechanized cardmovement device. The MPC 310 can be separate to or combined with themagnetic medium used to encode digital card information.

To accurately determine the correct magnetic medium position the user isrequired to insert or withdraw a card without reversing direction.Alternatively, specific MPC 310 values could be stored vertically orhorizontally (e.g. position 145) which would allow a card to be started,stopped and even reversed. A further less preferred option would be touse the encoded magnetic track data as a positioning clock. However, ifthe data on this track is corrupted, the ability to accurately encodeany track would be lost.

A wide variety of sensing methods could have been adopted including butnot limited to: voltage difference measurements, optical sensors, airpressure sensors, hall effect devices, etc. The decision to use amagnetoresistive head is based on the fact that the method is velocityindependent, reliable, low cost and could be combined with MWT 330 andMRT 340 manufacture.

A wide variety of magnetoresistive heads have been designed withexamples outlined in a texts "Magnetic Heads for Digital Recording"produced by Petru Ciureanu; "Magnetic Recording Handbook. Technology andApplications" by C. Denis Mee and Eric D. Daniel; "Thin Film DeviceApplications" by Kasturi Chopra; and "Magnetic Thin Films and Devices"by B. S. Middleton. Other magnetic transducers such as hall effectdevices or thin film inductive heads could also be used.

The MWT 330 encodes data delivered by the wallet micromodule 200, withthe preferred embodiment being a thin film inductive head. The MPC 310may be placed slightly ahead of the magnetic track, or the MPT 320 maybe placed slightly ahead of the MWT 330, with this being required if asignificant delay occurs between the time the magnetic medium positionis reported and when the appropriate data value is ready to be encoded.A variety of MWTs 330 are possible including, but not limited to, anelectromagnetic coil or one or more electromagnetic conductors.

A number of thin film inductive heads have been designed and could beincorporated. Examples include, but are not limited to, U.S. Pat. No.4,751,598 by Hamilton; "Magnetic Recording Handbook. Technology andApplications" by C. Denis Mee and Eric D. Daniel; and "Magnetic Headsfor Digital Recording" by Petru Ciureanu, the contents of which areincorporated herein by reference.

A major benefit of making the magnetic medium on the multimedia carddynamic and regularly altered, it that a very low coercivity magneticmedium can now be used. This significantly reduces the MWT powerrequirements with all the attendant benefits that this provides.

The final transducer is a magnetic read transducer 340 (MRT) which isused to check the magnetic medium data for correctness during encoding,read existing magnetic medium data on any insertable card, or read backencoded magnetic medium data that might have been modified. The MPC 310may also be read in conjunction with the MRT 340 so that magnetic mediumdata can be correctly determined.

The preferred MRT 340 embodiment is a magnetoresistive head, preferablyidentical to the MPT 320, with all MPT 320 alternatives equallyapplying. Furthermore the MRT 340 and the MWT 330 could also be combinedinto a single transducer as shown by Petru Ciureanu in "Magnetic Headsfor Digital Recording" and in "Magnetic Recording Handbook. Technologyand Applications" by C. Denis Mee and Eric D. Daniel.

Because of the relatively small magnetic medium data density a highmargin of recording tolerance is possible and should permit some degreeof variation in the distance between the magnetic reader/writer 220 andthe magnetic medium. However, if needed, a pressure clip, protrudingspring-loaded reader/writer, magnetoresistive material, or alternativemeans could be included to ensure that adequate contact between themagnetic reader/writer 220 and the magnetic medium is maintainedirrespective of card dimensions.

In operation, the digital card information to be encoded onto themagnetic medium is formatted by the wallet micromodule 200 into magneticmedium position order, then stored. As the card is moved the magneticmedium position, defined by the MPC 310, is read by the MPT 320 andreported to the wallet micromodule 200. The wallet micromodule 200 theninstructs the MWT 330 to encode the digital card information thatcorresponds to that reported position. The MRT 340 then reads theencoded information and passes it back to the wallet micromodule 200 sothat it can determine if encoding has been performed correctly.

While the MPC 310 positions are fixed, the ratio of MPC 310 positions toa digital card information bit is dynamic. This allows information to bestored at different densities on different magnetic tracks. This ratiois used by the wallet micromodule 200 to determine if any instructionneeds to be conveyed to an MWT 330, e.g. if the ratio is 5:1, onedigital card information bit will be spread over the same area taken upby 5 MPC 310 positions, and the wallet micromodule 200 will only need toinstruct the MWT 330 for every 5th MPC 310 position.

FIG. 3B illustrates a block diagram of the components of the presentinvention used to perform stationary encoding of a magnetic stripe 280located on a separate card, or programming of a magnetic stripe 280 alsolocated on an electronic wallet-card 400.

As seen in FIG. 3B, another embodiment of a magnetic reader/writer 220is shown, with this embodiment achieving magnetic medium reading andwriting while both the electronic wallet 100 and the card arestationary. The only difference between this embodiment and thepreferred embodiment is in the reader/writer method which uses amagnetic transducer array 350 (MTA). The card is inserted into theelectronic wallet 100 with the card magnetic stripe 280 placed againstthe MTA 350. A magnetic material, such as a ferrite slurry, is placed onthe side of the electronic wallet 100 immediately opposite the MTA 350and acts as a magnetic flux closer 360. The magnetic flux closer 360 andMTA 350 effectively surround the magnetic stripe 280 and achieve fluxclosure with it.

The MTA 350 consists of a number of magnetic transducers with data beingfed by the wallet micromodule 200 to the appropriate transducer whichthen encodes or reads an adjacent portion of the magnetic stripe. Avariety of methods could be adopted to achieve reading/encoding. Theseinclude positioning the data bits by multiplexing or providing aseparate path for each data bit to each transducer. However, thepreferred embodiment will use a magnetic shift register memory (MSR)approach.

A wide variety of MSRs have been designed as shown by U.S. Pat. Nos.3,947,139 to Tickle, 4,124,901 to Battarel, 3,786,449 to Jauvitis,3,774,182 to Copeland III and 4,199,819 to Scwhee et al., all of whichare incorporated herein by reference. A variety of techniques arepossible including but not limited to: domain wall motion, magneticbubbles and domain tip propagation. One major advantage of the magneticshift register is the avoidance of data positioning logic circuitry.Once magnetized, magnetic bits are propagated serially along themagnetic shift register in the sequence they are submitted to thatregister. The magnetic stripe 280 serves as the register magneticmedium, with an MWT 330, propagation circuitry and MRT 340 located onthe electronic wallet 100.

Another method of stationary encoding would be to position data bits inthe correct sequence and have each position's value used by one or moreMWTs 330 to encode the adjacent magnetic medium area. Effectively thismethod requires two steps, data positioning and magnetic bit encoding.For data positioning an X/Y matrix approach could be adopted with thisapproach permitting the use of cross fields or co-incident currentfields as a method of encoding. An example of co-incident current isdemonstrated in U.S. Pat. No. 5,063,467 to Colineau et al., while anexample of cross field encoding is demonstrated in U.S. Pat. No.4,751,598 to Hamilton, both of which are incorporated herein byreference. However, the most suitable option would appear to be the useof a data shift register for data positioning, with one or more MWTs 330and MRTs 340 connected to each register position. Encoding could beperformed during or after shift register input, with many othervariations of encoding using a data shift register possible and obviousto those skilled in the art.

Any method of encoding could be complemented by inclusion of a singlevalue encoder. This encoder would reset all magnetic medium values to asingle polarity which would require the varying data encoder to set onlythe applicable reverse polarity values. A multi-turn electromagneticcoil would be one method of achieving this task.

A alternative embodiment of the electronic wallet 100 is disclosed inFIGS. 4A and 4B. In this embodiment, the electronic wallet 100 andgeneric multimedia card 260 are combined to create an electronicwallet-card 400 of dimensions that comply with ISO document 7810. Nocard slot 130 or smart card reader/writer 210 are included. However, awallet-card holder 450 is provided to add certain functions to thewallet-card 400.

FIG. 4A illustrates a block diagram of the components for thewallet-card 400. A keypad 120, display 110, radio frequency transceiver230 and clock/calendar 240 perform the same functions as outlined inFIG. 2A for an electronic wallet 100. Reading and writing of themagnetic stripe 280 is performed as shown in FIG. 3B and described inthe accompanying description thereto, with the following differences.The magnetic flux closer 360 is now located on the wallet-card holder450 and the magnetic transducer array 350 has been relabelled as amagnetic programmer 350. A magnetic programmer 350 is defined as amagnetic transducer array 350 capable of reading from or writing to asingle magnetic stripe 380, with ability to read or write to anymagnetic medium precluded.

FIG. 4B provides a block diagram of the wallet-card holder 450components. The wallet-card holder 450 is used to hold a wallet-card 400and provides rigidity to the wallet-card 400 to prevent excessiveflexing. The wallet-card holder 450 also includes a battery 250 powersupply, which could be augmented by or replaced with solar cells, and awallet-holder micromodule 410. The wallet-holder micromodule 410 isincluded to provide separate levels of security and to performwallet-card 400 authentication, but could equally be omitted if neitheris needed.

A smart card reader/writer 210 is also provided, to enable power to besupplied to the wallet-card 400 and to allow data exchange between thewallet-holder micromodule 410, or a media attachment 550, and thewallet-card 400.

The wallet-card holder 450 also functions as a generic attachment card500, with an attachment connector 420 provided. The attachment connector420 is of the pull-out, fold-over or similar variety--to reduce overallcarrying dimensions, and allows the addition of any media attachment550. FIG. 4C illustrates an elevated view of the electronic wallet-cardholder 450 with a wallet-card 400 located within it.

FIG. 5A is a schematic view of a generic attachment card 500. This cardis used to provide ability to fit one of any number of media attachments550 to an electronic wallet 100. It is inserted into the card slot 130thereby creating an data input-output connection and eliminating theneed to include a wallet input-output port.

The height and width of the generic attachment card 500 is the same as ageneric multimedia card 260, with the length sufficiently long to allowa media attachment 550 to correctly attach to the attachment connector420 when the generic attachment card 500 is completely inserted into theelectronic wallet 100 card slot 130. To reduce card size, the genericattachment card 500 could be made expandable by comprising overlappingor fold over segments, and only made up to its full size when it is tobe used.

A further serial input-output port (not shown) could also be provided onthe electronic wallet 100. This would be combined with one or moreswitches to provide electronic wallet 100 to smart card reader/writer210, electronic wallet 100 to input-output port, and smart cardreader/writer 210 to input-output port connections.

FIG. 5B illustrates an example of a media attachment 550. A card slot130 allows a generic attachment card 500, generic multimedia card 260 orsmart card to be connected to a media attachment 550, with data and/orpower exchange occurring via an attachment interface 520. A variety ofsmall sized, highly functional attachments can be used as required.

All attachments are designed with a standard media attachment 550, whichincludes at least an attachment interface 520 and a card slot 130 ofapproximately the same dimensions as the card slot 130 in the electronicwallet 100 of FIG. 1. Typically the smart card reader/writer 210, walletinterface 510, attachment connector 420 and attachment interface 520complies with smart card connection and placement standards as outlinedin ISO documents 7816 and 10536. This allows any attachment connector420 or smart card to be inserted into a media attachment 550 with anelectronic connection correctly established.

Alternatively, a different attachment interface (not shown) could bedeveloped to interface with the additional serial input-output port (notshown). All potential attachments could then be designed to interfacewith an electronic wallet 100 via this port.

Some potential attachments include a pass through attachment to allowdigital cards and transactions to be transferred between an electronicwallet 100 and a memory module located on either the media attachment550 or a separate smart card. Also a generic cable capability to inserta cable with a serial or parallel connector on one end and an attachmentconnector 420 on the other end could be provided.

A second attachment that could be used includes a telephone attachmentwith a fax/modem and/or Dual Tone Multi-Frequency (DTMF) transceiver,and a phone cable connector.

A third example includes an infrared attachment with an infraredtransceiver, to provide interaction with existing and futuretelevision/multimedia control units.

A fourth and final example includes a radio frequency attachment withradio frequency transceiver 230 to allow a smart card to communicate viaradio frequency waves. Some potential uses include an electronic purseattachment to make payments, a radio frequency key for cars, homes etc,an extended radio frequency range transceiver to make road tollpayments, and a long range transceiver to provide paging and personalcommunications services.

Having defined the various components, the method of operation of thepresent invention can easily be understood. A desired task or operationto be performed is selected, with the most common being "PAY." A digitalcard is then selected, such as CR (credit), and optionally a DATA itemis also selected, depending on the operation chosen.

Should multiple digital cards exist, the user is presented with a listof available cards and requested to select one. Digital card selectioncan be initiated by either the wallet user or by an interactive medium.

Once selected, the digital card is processed by the wallet micromodule200 according to the digital card process instructions. A default outputmedia is optionally defined for a digital card, with the overall defaultbeing the magnetic medium. However, interactive media can override thesedefaults and specify a different media interface.

A digital card transaction is formatted according to parameters storedwithin the chosen digital card process, with these parameters optionallytailored according to the medium to be used. Data for a digital cardtransaction can be obtained from the digital card itself, from the uservia the keypad 120, from a card located within the electronic wallet100, and/or from the medium that is interacting with the electronicwallet 100. The formatted transaction is then output to the selectedmedium interface.

Card transaction formatting can include encryption of all or any partsof the transaction, and may also include one or more hash codes. A hashcode, also referred to as a message digest code, is a code generated bya mathematical algorithm. Specific information is fed into thisalgorithm and a code representing this information is created. Thisprocess can then be repeated at a later time to ensure that informationhas not been altered, as any change will result in a different hash codebeing generated. Both encryption and hashing code generation willtypically be performed by either the wallet micromodule 200 and/or thecard micromodule 270.

Any follow up actions are taken according to digital card processinstructions after digital card transaction output has been completed.These includes such steps as automatic transaction recording,transaction identifier updating, etc.

The ability to define when a user password is required is the preserveof the digital card issuer. However, within any limits set by thisissuer, the user has the ability to define digital card and walletpassword protection according to individual needs.

A major benefit of the electronic wallet 100 is the ability to use anyinsecure communications medium such as a phone or fax. Electronic cash,checks, card renewals etc. are requested by having the electronic wallet100 generate and store a secure request code. This code is thensubmitted to a request approver using telephone communication means suchas speech or phone keys, with an approval code being issued by theapprover and entered into the electronic wallet 100 via the keypad 120.Approval authentication and request comparison are then performed beforeupdating and request removal. Of course more efficient ways of achievingthese tasks is possible, but would be require extra equipment andelectronic circuitry.

A further wallet benefit is the ability to secure a digital cardtransaction and output it to any media acceptor. An example of this isthe ability to use any magnetic reader and existing infrastructure toaccept electronic cash or checks, on-line debit or secured credittransactions, and have them all use the same communications network oroffline authentication methods to prove transaction authenticity.

Cash and checks could be encrypted, authenticated by the acceptor,communications provider or digital card issuer, and settled viaelectronic funds transfer. On-line debit transactions could bestructured to mimic the existing debit transactions, with the amount andpin input by the user via the wallet keypad 120 and encrypted by thewallet micromodule 200. Finally, credit transactions could takeadvantage of the inclusion of passive hash codes (such as CVVs) and thecreation of unique payee identifiers to make the hash code dynamic. Byentering a payee number and, optionally, an amount, and by incorporatingthese items and a secret code into this hash code, a credit transactioncan be made dynamic, unique, and payee specific without having to changeany part of the infrastructure. Furthermore, entry of this informationallows these transactions to be automatically recorded by the wallet.

Off-line authentication can be achieved by encrypting digital cardtransactions using asymmetrical encryption, and/or by symmetricalencryption combined with a secure payment authentication device (pad).Decryption can then be performed and authentication established by thecard recipient without endangering the security of the encryptionprocess. Random, medium specific or periodic on-line authentication, asan extra security measure, can then be performed according to wallet andrecipient parameters.

The ability to generate a secure transaction and to delivery thattransaction using any insecure communications method has enormouspotential in the area of payments. The electronic wallet 200 and genericmultimedia card 260 can now function as a universal payment generator inthat ANY and all payments could now be made using these items, and acompletely new and revolutionary Payment method can now be provided.

By securing a payment, separation of payment generation from paymentdelivery is achieved. When combined with the ability to submit a paymentvia any media interface, any payment delivery vehicle can then be used(e.g. payment displayed and communicated verbally, by touch-tones, or inwriting using a fax, over any phoneline; payments transferredelectronically or manually to a PC, PDA or any other electronic devicesuch as an ATM or Kiosk; payments conveyed in writing using traditionalpostal delivery).

While a payment will be secured by encryption, it can be made even moresecure by the creation of a new payment format which does notspecifically include any payment account information. This format(called a PAT for Public Account Transaction) is based on use ofidentifiers and includes a unique payer identifier, a secure PAT code,the payment amount, and optionally a payee identifier--although bearerbased payments could be created with optional inclusion of a PIN forpayee protection. The payee identifier could also be included in the PATcode to provide total payment confidentiality--all that would berevealed is the payer identifier and payment amount.

The PAT code will include a digital card identifier which is unique tothat payer, and will allow any payment facility to be used (Debit,Credit or Cash). A payment sequence number unique to that payer willalso be included to stop payment re-use. Finally, a payment hash codewill be included to ensure the correctness of all payment information,and to make each payment more secure. This hash code could include suchinformation as: the payer identifier, the amount and currency, theactual payment instrument account number and expiry date, the paymentsequence number, and the payee identifier--if present.

PAT payments would then provide the best of both worlds, The offer theflexibility and portability of a credit card number, but with much moresecurity than a check so that they can be safely seen and handled by anyparty. This allows them to be delivered electronically to a local entityusing free or cheap communications (e.g. a telephone call), then batchdelivered to a central hub for processing using economies of scale.

A central hub would authenticate each payment, check for paymentduplication, then reformat that payment depending on the type of paymentinstrument used. Payment settlement would then be preformed usingexisting secure networks (e.g. Credit, ATM, ACH etc).

By separating the payer identifier and amount from the encrypted PATcode, Payments can be made much more secure in two ways. Firstly, PATcodes can be encrypted using a key unique to that payer, so that paymentdecoding would only provide access to a single payer and payerinstrument, and then only via a PAT payment format as no instrumentinformation has been revealed. Secondly, security can be increased inproportion to the amount being paid. Payment authentication will thenvary depending on this payment amount.

Various other operations provide further benefits. Digital card usageautomatically requires a digital card to be active, with expiration of adigital card resulting in an inability to use it. Similarly, digitalcard access can be made password and/or amount specific. Many otherpayment and non-payment related benefits are also possible.

As can be seen, the concept of a multimedia electronic wallet 100 andgeneric multimedia card 260 that provides media interfaces in the formof a smart card reader/writer 210 magnetic reader/writer 220, radiofrequency transceiver 230 and user interface, as well as providinggeneric media interface expendability, has not been developed to date.This wallet provides advantages such as: ease of use, universalacceptability, new financial instruments, offline paymentauthentication, and reduction of fraud. Specifically, an electronicwallet 100 and generic multimedia card 260 that allows the existingmagnetic stripe 280 infrastructure to be retained, permits the inclusionof smart card digital cards, provides very fast and convenient radiofrequency communications, and allows any existing or new digital card tobe submitted via any of these or other media interfaces, has not beenenvisioned prior to the electronic wallet of the subject invention.

The electronic wallet 100 and generic multimedia card 260 of the subjectinvention provides convenience, security and simplicity for the walletowner, digital card issuer and digital card acceptor, and in a verycost-effective manner. The electronic wallet 100 and generic multimediacard 260 solve all the aforementioned and other traditional wallet itemproblems and supersede this wallet as the primary wallet of choice.

While the subject invention has been described with reference to thepreferred embodiments, it should be understood that various changes andmodifications could be made therein, by one skilled in the art, withoutvarying from the scope and spirit of the subject invention as defined bythe appended claims.

What is claimed is:
 1. A compact electronic wallet comprising:userinterface means for receiving input including medium selection andtransaction initiation commands from a user of the electronic wallet;processor means connected with said user interface means for controllingthe operation of the electronic wallet in response to said user input;smart card interface means connected with said processor means fortransferring data between the electronic wallet and processing circuitryon a multimedia transaction card; and magnetic medium interface meansconnected with said processor means for writing data to a magneticmedium on the multimedia transaction card.
 2. The electronic wallet ofclaim 1 wherein said processor means includes a micromodule.
 3. Theelectronic wallet of claim 1 wherein said processing circuitry includesa micromodule.
 4. The electronic wallet of claim 1 wherein said magneticmedium interface means further operates to read data from said magneticmedium on said multimedia transaction card and to transfer said data tothe electronic wallet.
 5. The electronic wallet of claim 4 furtherincluding radio frequency transceiving means for transferring databetween the electronic wallet and a remote data processing device. 6.The electronic wallet of claim 1 further including radio frequencytransceiving means for transferring data between the electronic walletand a remote data processing device.
 7. The electronic wallet of claim 1wherein said digital card information is formatted to correspond topredetermined physical positions within the magnetic medium and saidmagnetic medium interface means comprises:magnetic medium positiondetecting means for detecting the position of the magnetic mediumcontained on the multimedia transaction card and for generating positioninformation corresponding to said detected position; and magnetic mediumwriting means for receiving said data to be written to the magneticmedium and for writing said data to the magnetic medium carried on themultimedia transaction card; wherein said processor means furtheroperates to read said position information from said magnetic mediumposition detecting means and to transfer said data corresponding to saidposition information to said magnetic medium writing means.
 8. Theelectronic wallet of claim 7 wherein the magnetic medium carried on themultimedia transaction card comprises a first portion for storingmagnetic medium positioning information and a second portion for storingsaid data information.
 9. The electronic wallet of claim 8 wherein saidfirst portion of the magnetic medium contains a magnetic positioningclock and said magnetic medium position detecting means includes a thinfilm magnetoresistive head that detects said magnetic positioning clock.10. An electronic wallet including a magnetic medium interface fortransferring card data between the electronic wallet and a magneticmedium contained on a transaction card comprising:storage means forstoring the card data to be written to the transaction card, said carddata being formatted to correspond to predetermined physical positionswithin the magnetic medium; magnetic medium position detecting means fordetecting the position of the magnetic medium contained on thetransaction card and for generating position information correspondingto said detected position; magnetic medium writing means for receivingsaid card data from said storage means and for writing said card data tothe magnetic medium carried on the transaction card; and processor meansconnected with said storage means, said magnetic medium positiondetecting means and said magnetic medium writing means for receivingsaid position information from said magnetic medium position detectingmeans and for transferring said card data corresponding to said positioninformation from said storage means to said magnetic medium writingmeans.
 11. The electronic wallet of claim 10 wherein said processormeans includes a micromodule.
 12. The electronic wallet of claim 10wherein the magnetic medium carried on the transaction card comprises afirst portion for storing magnetic medium positioning information and asecond portion for storing said card data information.
 13. Theelectronic wallet of claim 12 wherein said first portion of the magneticmedium contains a magnetic positioning clock and said magnetic mediumposition detecting means includes a thin film magnetoresistive head thatdetects said magnetic positioning clock.
 14. The electronic wallet ofclaim 10 wherein said magnetic medium interface further comprisesmagnetic medium reading means for reading said card data from themagnetic medium carried on the transaction card and for providing saidcard data to said processing means.
 15. The electronic wallet of claim10 wherein said transaction card is a multimedia transaction card andsaid electronic wallet further comprises smart card interface meansconnected with said storage means and said processor means fortransferring data between processing circuitry contained on themultimedia transaction card and said storage means.
 16. The electronicwallet of claim 15 wherein said processing circuitry includes amicromodule.
 17. A method of transferring card data between anelectronic wallet and a magnetic medium contained on a transaction cardcomprising the steps of:receiving said transaction card into a magneticmedium interface contained in the electronic wallet; formatting saidcard data to correspond to predetermined physical positions within saidmagnetic medium contained on said transaction card; detecting theposition within said magnetic medium interface of the magnetic mediumcontained on said transaction card; and writing said card datacorresponding to said detected position to said magnetic medium.
 18. Themethod of claim 17 wherein said step of detecting the position of themagnetic medium contained on said transaction card includes the step ofdetecting a magnetic positioning clock provided on said magnetic mediumcontained on said transaction card.
 19. The method of claim 18 furthercomprising the step of reading said card data from said magnetic medium.20. The method of claim 19 further comprising the step of comparing saidcard data read from said magnetic medium with said card data written tosaid magnetic medium to verify the integrity of said card data writtento said magnetic medium.
 21. The method of claim 17 wherein saidtransaction card is a multimedia transaction card.
 22. A method ofinitiating a secure electronic transaction through the use of a magneticmedium interface and an electronic wallet for receiving a compatiblemultimedia transaction card having a magnetic medium thereon, comprisingthe steps of:receiving input to the electronic wallet, said inputincluding digital card selection information and transaction formatselection commands from a user of the electronic wallet; retrieving adigital card data set containing digital card data corresponding to saidinput from an electronic memory containing a plurality of digital carddata sets; formatting said digital card data, including encrypting atleast part of the digital card data, to correspond to a transactionformat selected by said transaction format selection commands; writingsaid formatted digital card data to the magnetic medium on themultimedia transaction card; and initiating an electronic transaction byproviding said multimedia transaction card to a magnetic mediuminterface, reading said formatted digital card data from said magneticmedium on said multimedia card and initiating a transaction using saiddigital card data.
 23. The method of claim 22 including the step ofverifying the identity of the multimedia transaction card to confirmthat said transaction card is authorized to receive said digital carddata.
 24. The method of claim 23 wherein said step of verifying theidentity of the multimedia transaction card includes accessing digitaldata stored in an integrated circuit chip on said multimedia transactioncard.
 25. The method of claim 23 wherein said step of verifying theidentity of the multimedia transaction card is performed immediatelyprior to said step of writing said formatted digital card data to themagnetic medium on the multimedia transaction card in order to preventcard substitution.
 26. The method of claim 22 wherein said step ofencrypting at least part of the digital card data is performed by amicromodule on the multimedia transaction card.
 27. The method of claim22 wherein said step of encrypting at least part of the digital carddata is performed by a micromodule in the electronic wallet.